POL00028320 - Transformation Steering Group Progress Report to 23 November 1998 and Programme Definition Statement, 1998, Programme Name: Harnessing Technology (Draft A)

Evidence on official site

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Transformation Steering Group
Progress Report to 23 November 1998

Contents Page

1. Actions from previous meetings 2

2. Key Programme Issues 6

3. Issues Log. , 7

4. Top-level Milestone Report 10

5. Project Highlights Reports 14
Attachments

A. Minutes from last meeting 18

4

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1. Actions from previous meetings
ITEMS FOR DISCUSSIONS ARE SHOWN IN BOLD
Action Who When Update
raised :
1 The project sponsors to report back to the ATSG through Project 17/3 The S3 project board has agreed their project
the TMT on their proposals on the form of project assurance they sponsors/ assurance requirements.
will introduce. TMT . -
. : . TIP programme assurance will be agreed following
Propostls pal Horizon project tion is ave have been discussed, a . the embedding of the new programme management
timetable for their implementation is require structure.
Horizon project assurance has thus far been
provided by external consultants working on
government and other reviews. The use of external I
consultants for project assurance is likely to
continue at the discretion of the project board. .
Carry forward.
2 SERVICE DEVELOPMENT Stephen 19/5 An update was given to the ATSG in August. The
(a) The Service Development Plan (SDP) categories for Woolley SDP preparation is following business planning
prioritisation be clarified to ensure consistent understanding. timescales and a draft will be presented in December.
(b) The first iteration of the SDP plan to be completed by the end
of August
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3 Any existing training / change management budgets Ruth 19/5 The Requirements Specification will require
which would be used to deliver the change management required, Holleran appropriate projects to develop detailed change
or part of it, need to be identified. A break down of the management plans. Once these are known the manner
components of change management will enable this. in which these will be funded, including within
existing budgets, will be ascertained.
To be revisited at the end of phase 1 of the
. - Requirements Specification.
5 Paul Rich to discuss with Peter Turgoose with input from P Rich 24/7 Peter Turgoose is putting in place a recruitment
Paul Thornton, the potential shortage of project management P Thornton and training programme to develop project
skills in the business and action to be taken for the short term. management skills within POCL, this pool of
resource would be available to the projects.
Short term measures to fill gap have also been
identified, in the use of external project resource.
6 The acceptance process to include a condition on the clear DMiller 24/7 The separation of boundaries is one of the issues on
separation of boundaries between BA and POCL within the the key issue list that is part of the current contractual
Pathway system. : negotiations.
: Carry forward.
7 There is a need to assess the operational impact of the D Smith 18/8 The majority of the analysis has been completed, the
£3.1m of errors on TP in terms of manpower and capacity conclusion will be presented to the December ATSG.
8 There is a need to review the training resource and J Main/D 18/8 D Miller discussed this with John Main and Nancy
specification for the Horizon system to ensure that it will Miller Groff Witton and a potentially different approach
support conformance to training has been identified.
This issue to come back to the ATSG in November.
L . Update at the meeting.

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9 Capability testing

There is a need for wider business capability planning exercise
that is dynamic and regularly updated to enable the business to
sustain the pace of transformation

a) Rob Durrant should take this forward with the Gateway RDurrant —2g/9 @A project profile has been produced to take
process Gateway forward, and a meeting of interested
parties will take place on 27 October. The project
aims to have the system in place for the start of the
. . . . . next financial year,
a) A review of the minimum commercial requirements is TMT a . . wo.
required to feed into the capability planning exercise (b) &(c) This will be done during detailed migration
b) A capability impact assessment on the programme plan is TMT planning.
required Carry forward.
10 Business Standards A project profile has been produced to take this
.I a) All business standards and supporting documentation will be R Durrant 2219 work forward, but the establishment of the
produced in the same format and will be used for checking Conformance project (led by Andy Radka under
compliance, CICS and as a basis for BER Rob’s sponsorship) may provide an opportunity to
b) The way reserved powers fit in with this conformist model of make faster progress than planned.
working should be considered by the CEC :
12 The ergonomic implications of having both Horizon and DSmith 20/10 Done.
AP terminals on the counter need to be fed into the survey Update at the meeting.
process
14 The possibility of using Data Management and assigning DSmith 20/10 The possibility of putting a translation table in
movable codes to FAD codes, so that changes in office category place was investigated by the working group. The
can be implemented through the changes in the new codes to be translation table would have to be in Pathway’s
investigated - domain and the cost for this would be comparable
to the cost of changing the FAD codes in the case of
a-major organisational change.
Further update at the meeting.
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15 It was agreed that Peter Dent should investigate whether PDent 20/10 The timing of payment of employees is Euros is a
and when we need to be able to pay employees in Euros. business decision and Peter will be writing to CEC
and other business representatives with a
. recommendation based on benchmarking work.
The service offering under the following scenarios to be agreed: Service offering scenarios will be presented to the
(a) if UK is out, (b) if UK is in but the Euro has not been 8 1S AT boend in Fenrua .
introduced yet, (c) if the UK is in and the Euro is introduced.
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2. _. Key Programme Issues this month
RED LIGHT ISSUES
Horizon system
There are major concerns about the test results emanating from Model Office and End
to End.

The results indicate that cash accounts and transaction data delivered to POCL’s
downstream systems lack accounting integrity , all of which raises serious doubt about
Pathway’s ability to enter into the next phase of Model Office and End to End testing
without some form of remedial action.

OTHER ISSUES:

Migration to from MS Mail to Lotus

. The business has been directed by Group to go ahead with the migration from MS Mail
to Lotus in 98/99. This may have budgeting implications for the other automation
projects and may have change management implications for the programme. The
migration will be driven by a Group project and there is a need to ensure that POCL is
in a position to assess impact of this project’s requirements on the programme plan.

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3. Steering Group Key Issues Log
Existing i
Id when Issue Update Next Steps Owner
raised . 7
1, 17/2/98 =EMU . Roger Tabor
Compliance with EMU requirements will A draft im A
sailed plementation approach for the February agenda
havea substantial impact on POCL EMU has been prepared. item.
automation programme. A statement of . a . :
POCL’s business requirements of compliance Draft timescales for UK joining scenario have
needs to be produced to enable impact been identified and presented to the ATSG,
assessment by the systems. input to programme plan. Further work is
: under way.
2. 24/7/98 Horizon testing . : Dave Miller
The testing strategy is not being deployed as I MOT2 is now seen as the critical testing see red light
originally planned. There is evidence that the stage where all major functionality isdue to programme issues
early phases of testing are not covering the be tested,
scope that they should, and there is a danger
that the true purpose of MOT testing will be
lost, that major faults will be detected during
it, and that this will result either in delay or in
workarounds

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Id when Issue Update Next Steps Owner
raised
3. 24/7/98 Transaction times Dave Miller
A survey was conducted by research services A plan has been put in place by the Horizon Ongoing Cod
in February and May on the transaction times programme to resolve this issue. Further f reas)
at a sample of automated offices. The results work involves: baselining transaction times, dandi.r) .
show that on average the transactions at further measurement of transaction times,
automated offices are taking longer than the — work on the layout of Horizon equipment
contracted rate
4, 28/9/98 i TMT to work with business planning to New dates for the Dave Smith
The automation plan is being baselined on the identify a way forward based on the most programme plan have
strategic guideline dates. These are in line realistic dates. been agreed and have
with Horizon dates in most areas except the been circulated as a
timing of release 2+, release 3 and subsequent . . basis for the OPB.
releases. The business planning team have been made
The business planning assumptions are aware of this issue.
incorrect with a risk of further slippage
making the Business plan information out of
date.
Dates suggested for release 3 clash with the
switch over to the new back end systems.
5. 28/9/98 i This issue is being managed by.Graeme Ongoing Dave Smith

Royal Mail have indicated that there may be
tariff changes in January 99. Pathway
timescales for such an operational change are
different from the Royal Mail decision
making timescales.

Royal Mail are unable to introduce tariff
changes.

Seedall (Horizon Assurance Team).

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Ta when Issue Update Next Steps Owner
raised ;
6. 28/9/98 Capability planning CEC are due to discuss proposals on the Rob Durrant

18 months ago the Midlands region supported
by Chris Robinson (external consultant)
undertook some work on regional capabilities
to support roll out concentrating on people
capability. This work indicated that the then
planned level of resource was insufficient to
support the roll out. Amongst a number of
measures to address this issue CEC agreed
that there would be no new products launched
during the roll out.

The Business Planning process gives a high
level view of a single point in time. A more
detailed capability process is needed that is
updated on a regular basis

Business is not able to sustain the pace of
transformation, either through a lack of
resource or because it has to pause to enable
changes to current state to be made

Gateway process later in the day. CEC
members are invited to consider the extent to
which the Gateway process can fill these gaps

A project profile has been prepared to take
Gateway forward.

The Migration. Working Group has been re
convened and will be undertaking detailed
migration planning, which will identify the
impact and constraints of automation on the
business. This process needs to plug into a
wider business capability checking process.

See action point summary.

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4.

Top-level Milestone Report

4.1 Milestones achieved

04 First 200 offices live I Complete Tolle out of 200 offices and lessons learnt for POCL — 30-Sep-97 30-Jun-97
(Stream A) implementation activities

B3 Automation Business I MaPEC business case produced and agreed and restructuring of projects Sept-97 July-97
Case complete

B4 Programme Automation steering groups in place and working well and TMT resourced Aug-97
management structures I by POCL employees
fully operational .

O6 Horizon Congo 4 Pathway’s BPS service and all BA and POCL activities are ready to be 2-Nov-97
release authorised switched on in the 200 live offices ,

O5 New BA settlement Testing and procedure walk-through demonstrates to POCL's satisfaction 3-Nov-97 6-Oct-97
process ready that new plastic-card settlement process is ready to go live .

B6 Start of Distribution Agreement to proceed with ADS Pilot. Pilot region ready to proceed. 12-Mar- -Keb-!
Pilot . . - 28

O7 Regions ready for b) Regional plans for supporting task force developed .
Horizon : . April 98

O16 Pathway to POCL Testing between Pathway and POCL’s 3 systems (HAPS -Host Automated I 8-July-98 1-May-98
system testing Payment System, Interim TIP and Reference Data) completed successfully
successful and indicating that EPOSS and APS well on track

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Milestones achieved this month
No milestones achieved this month
Milestones removed
No milestones removed in this report.
4.2 Milestone report
Key
Traffic light conventions:
Milestones for which dates have not been agreed will have'a TBA under the date , no traffic light shown
Milestones for which there are firm agreed dates will show date in bold’and underlined traffic light relates to due date
Milestones for which dates are generally accepted but not yet agreed, dates shown in normal characters _ traffic light relates to due date
~ =
Key Milestone : I Activity Description o Due Date Old Date
O7 Regions ready for a) National and regional implementation teams in place _ x) Jan 99
Horizon :
O08 POCL Release contents I Release prioritisation process agreed x) Dec 98
prioritisation process
agreed ;
O9 EPOSS and AP Services I PDA demonstrates integrity of Pathway services and POCL’s accounting, x) 22 Jan 98 18-Dec-98
fully tested reconciliation and settlement process :
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Key Milestone Activity Description ay Due Date Old Date
O10 Service management a) All Service Level agreements and service management Processes are in AC Jan-99 31-Mar-97
ready place and ready for live trial evaluation
TBA
b) Conformance requirements identified and procedures in place to enable
conformance.
i]
O11 Horizon Nile 2 release a) Pathway’s full service and all BA and POCL activities are ready and o® 22 Feb 99 18-Dec-98
authorised full service authorised to go live
b) Start of live trial ®@ . April 99 Jan- 99
¢)Commencement of national roll out o@ Aug 99I I October 99
Olla Release 2+ authorised I Horizon release 2+ “proof of concept” agreed to enable contractual @
acceptance - G April 2000 February
2000
O12 Live trial complete Activities to assess the acceptability of Pathway’s service complete. July 99 April 99
Authorisation to proceed with roll-out given. I .
B2 Overall automation Plan agreed, including legacy systems interfacing/replacement, to 2@ November Jan 98
programme plan agreed I implement migration approach 98
B5 POCL’s overall Test End to end integration testing strategy defined and end to end UAT agreed o@ 1 dec 59 Sep-97
Plan agreed to enable 6 month trilateral testing between the projects to commence
prior to all back end systems going live.
B8 Pathway Release 3 live I Pathway Release 3 accepted for go live x) Oct 2000 Apr-2000
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Key Milestone Activity Description be Due Date Old Date
B15 Year 2000 Compliance work complete on all systems c@ Dec-98 NEW
B9 New accounting systems I Back end systems ready to operate new accounting + settlement AQ Oct-2000 TBA
operational processes. :
B10 Operational TIP a) Operational TIP (batch 1, interface to-Horizon) developed, tested and x) October 99
operational ready to replace existing systems
b) Operational TIP (batch 2 , interface to strategic systems and ready to «@ April 2001
replace legacy systems) ready for testing
B11 POCL-MIS Phasel ' POCL-MIS developed, tested, and ready for operation TBA
operational
B12 Distribution roll-out Final Cash Centre operating with ADS ® Oct- 2000 Nov-99
complete
B13 Pathway roll out a) Pathway roll out complete x) Nov-2000 Oct-2000
complete
b) Pathway’s service available in every outlet (i.c. “mop up” exercise @
complete) G April 2001 March
. 2001
B14 Migration complete IS Strategy systems implemented and all legacy systems replaced AO Dec-2000 TBA
B15 Data Management Data Management processes defined and implemented, data management @ April 2001 April 2000
systems ready for multi lateral testing with strategic systems

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B16 All system integration Start of multi lateral testing (6 months before full integration) c@ April 2001
I All systems working together for the first time . c® October
‘ i 2001

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5. Project Highlight Reports

High Level
Summary

Last Month

Planned for Next Month

Horizon &
reference
data

The major focus of the Programme at the current time is
supporting the existing live systems, supporting the testing
phase and progressing the ‘Programme Management’ content
of the Replan with respect to the Live Trial, multiple Benefits
and the NR2+ Release. In addition, the contractual
implications and acceptance process arising from the replan
are being clarified. :

The current Release continues to provide a Benefit Payment
Service and Order Book Control System for Child Benefit
Payments in 204 outlets (119 in the South West & South
Wales Region and 85 in the North East Region). From an
operational point of view, there are no major threats to
business continuity. Fixes relating to Incomplete Transactions
have completed testing and were successfully implemented at
the counter on 9 October. ‘Initial results have been
encouraging :

All Acceptance Specifications to be sign-off.

Model Office Rehearsal to complete.

TIP

Interim TIP
Completed Model Office Testing pass 2
Started model office testing pass 3.

Continued end to end testing pass2.

Interim TIP

Complete model office testing pass 3
Complete end to end testing pass 2
Start Year 2K testing

Prepare for Reference Data live proving

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High Level Last Month Planned for Next Month
Summary
Qperational TIP

Gained MaPEC approval for interim funding until the
December PO Board

Completed Constellar training for current staff
Completed Batch 1 high level design
Completed Batch 2 analysis

Obtained HP Unix development machine

Operational TIP
Obtain sign off for Batch 1 high level design
Obtain sign off for Batch 2 analysis

Install Unix development machine at Huthwaite and transfer
environment from current NT machine

Start Batch 1 detailed design
Start Batch 2 high level design.

Data Held “visioning” workshop and produced reports on Obtain sign off of perceptions of data management
Management I perceptions of data management disciplines and design disciplines, design principles and RDL requirements
principles Produce and install Repository tool.
Evaluated and selected Repository tool
Held walkthrough on RDL requirements
Single SAP SAP HR; UAT underway . SAP HR; UAT continues
system SSSP: Project initiated. Last member identified SSSP: Conceptual design continues
ADS Bedding down of system at Dartford . Measurement of Development and issue of Etna Distribution Centre Managers
processes in some areas, some further alignment to SAP Implementation Pack Part 1.
processes which will continue. Internal review of Training.
Further Disaster Recovery Testing to be completed by 4/11. Internal review of System Documentation.
SAP ADS QA Review - has been completed. A summary P I ising from D: .
j . tford Impl .
report has been submitted to the Project Board. rogress Issues arising from Dartford Implementation
. . Undertake Year 2000 testing to achieve compliance by
Inventory review of IT equipment undertaken 211/98
- Progress further Change Management of Dartford processes.
AP project Installations are now underway, and are being completed to I Installations to continue as scheduled with completion

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High Level Last Month Planned for Next Month
Summary

schedule. As of 30" October a total of 958 outlets had been
installed out of a forecast number of 964.

Keltek did experience some difficulties in obtaining parts for
the terminal and as a result the despatch of the terminals to
outlets stopped for a week, however, installations were not
affected by this. Delivery has recommenced and as of 30
October Keltek have despatched a total of 1680 terminals.

There have been some problems with the quality of the
terminals being produced by Keltek with slightly higher than
expected DOA rate.

scheduled for 27/11

Year 2000

Critical Non-
critical

Total Number of Systems 54. ° 64
Number of systems exempt or retired 3 43
Number of systems to be replaced 2 1
Number of systems to be converted* 49 - 20
Systems with detailed and resourced plans
(confirmed by supplier) 48 20

Number of systems planned to complete in 1998 49
Number of systems with conversion commissioned 49
Number with completion dates in 1999 0 0

- Resolve Horizon/Pension test environment conflict.

- Interface testing and end to end testing slots to be confirmed..

- Complete Implementation of CASM - on line for end of
October .

- Integrate ‘Change Freeze’ implications with TMT Change
Control process and agree approach Managing Systems
Changes and Change Freeze to communication across the
Business.

- Formalise and baseline plan of Y2K activities for the period
to Margh 2000 :

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High Level Last Month Planned for Next Month
Summary
Number requiring use of test centre 16 1
Number booked into test centre 16 1

Number with UAT planned and resources

confirmed OK by Business 4 5
Systems completed 45 15
Computer Systems

- The following major systems are included in the above table
of “completed systems” .

CBDB; Intellect; CASM; SAP; RIVA , ABC, the 5 Outlet :
systems which feed into the HAPS/Tandem and 11 Data
Central Systems.

- Data Central systems (11) have been implemented.
- All CASM sites implemented

- WTMS due to be tested w/c 17 August but the software was
delivered in an unacceptable state and rejected. Re-installed
16/9 for UAT testing commencing 21/9. Testing almost
complete but poor quality of work being raised with BSG via
ITs.

- LID and ReCALL currently being tested

~ Plan agreed to use the IBM DR site for testing of SAPADS
and SAPHR. Cost reduction on SAPHR identified arising
from reduced test period.

- Two systems have been taken off the escalation report to

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TSG Progress Report 23 November 1998
High Level Last Month Planned for Next Month
Summary sO
Group...

¢ Riva till replacement - instructed to go ahead with
replacement and provide a programme plan to complete by
February 1999 .

¢ Lotus Notes - this drops out of the Y2K critical path
following take-up of MS Mail Y2K fix which will be rolled
out by end of January 1999.

Only escalation now is Horizon R2 and further work is being
done to develop contingency plans for making R1C compliant
before 2000.

- Change freeze and change management processes being
developed within the team and in liaison with TMT then will
be communicated in November 1998

Business continuity

- Year 2000 Resourcing Requirements and Business
operational dates communicated to senior managers for
confirmation of nominated staff for the roll-over.

- Critical Success Criteria paper updated with comments from
the September Board and feedback from members. The top 5
CSCs have been identified and will be communicated to the
CEC

Client Take
On

LFS CCN recommended for signature- formal design and
development activity between POCL and ICL Pathway ‘to
commence for inclusion of LFS within Horizon release 2+.

1* cut commercial requirements prioritisation - to enable

Service Development Plan - 1* cut draft

EFTPOS - further definition workshops

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High Level Last Month Planned for Next Month
Summary

inclusion within service development plan of existing
requirements and emerging (New Vision) requirements.

Initial proposals made to define working arrangements
(guiding principles, roles & responsibilities) between Service
Development Team and Horizon Solutions Architecture
Team.

Simple Payment Card (British Gas) - change request
submitted for impact assessment for possible inclusion in
NR2+

EFTPOS - continued series of workshops to define draft
requirements

Agree working arrangements between Service Development
Team and Solutions Architecture Team

TMT

End to end workshops with projects , process owners, and
other relevant business representatives undertaken

99/00 budget reductions implemented and impact assessment
on the plan performed

Further work on requirements specification work.

End to end workshops completed

Requirements specification work completed .

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Appendix A

Item 1

Ttem2

Item3

3.2

33

34

Action

35

3.6

37

Item 4

4.2

- delayed. POCL MIS and End to End implementation have already been cut by the

Notes of meeting on20 October 1998

Actions from last meeting

See updated action points

Red Light issues

There were no new red light issues.

Other issues

It was noted that there is a potential for overspend versus the business case numbers
for 99/00. This was due to a different understanding over the scope of the project
from that in the original July MaPEC business case.
Overall business case
It was noted that an overall business case with updated numbers and assumptions is
due to go to the December PO Board and that a new Horizon case would be required
by then, . . :
Release 2+
It was noted that release 2+ is now expected in February 2000 (pending the Horizon
update on timescales) and that it will include smartcard products. In some cases the
counter will have to accommodate both the Horizon terminal and the AP terminal to
continue to provide AP functionality until Release 2+ is implemented
Another potential issue is that a British Gas new product requires smartcard
capability not currently provided by Release 2+, raising the possibility of needing to
maintain the AP terminals until release 3, in order to keep British Gas as a client.
The British Gas issue is being impact assessed. .
The ergonomic implications of having the two types of equipment on the counter
need to be fed into the survey process.
D Smith

9
The ATSG was informed that in order for the automation programme to deliver the
20% cut required timescales will need to slip and one major project will have to be

CEC and the Single Sap System would have to be delayed to enable delivery of the
cuts,

It was noted that where projects were cut/ slowed down there was an opportunity to
divert the resource to other projects and/or Group.

It was noted that there is a possibility that technology requirements have been
double counted across the programmes and that Wendy would assist Finance in
identifying such duplication.

Horizon testing and timescales

Dave Miller gave an update on the progress of testing in the Horizon programme
and how that impacts on current timescales,

Testing was due to complete on 18 December with a release Authorisation Bard .
taking place after that. The Horizon programme view is that these dates are not
achievable because of problems encountered during testing, so the testing phase will
be extended by four weeks following MOR. Additionally a further testing phase has
been added in January/ February lasting four weeks which will enable complete
testing results to be assessed prior to authorisation. National roll out is now duc to
commence on 16 August ending in November 2000. These dates have not been
formally agreed with Pathway , they are however prudent dates to be used for
planning purposes. .

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Item5

Item 6
6.1

6.2

63

6.4

65

Item7
TA

712

Release Authorisation”

Naresh Mohindra gave a presentation on the release authorisation process (slides

attached),

The following were noted:

the Release Authorisation (RA) decision endorses the release for live trial, it
does NOT provide contractual approval of the delivered services

© the main risk with RA is that there is an exposure to errors in the live trial
environment

© the release authorisation process is not intended to be bureaucratic, less paper
will be used, issues will be raised at an early stage and there should not be too
many thick reports to read.

© regular reports will be produced at -12,-10,-6 -2,-1 weeks from authorisation.

© a business owner would be assigned to each criterion and they would take the

decision on the acceptability of the results attached to the criterion assigned to
them by looking at the relevant evidence.

Requirements Specification

Dave Smith gave an update on this work. The background to this is the agreement
that the requirements specification document would be used as the basis for a new
front end or for going to the market.

‘The requirements specification document needs further work to be fit for going to
the market, and a number of critical business people must Contribute toitasa
business priority.

It was noted that the requirements specification is based on a “generic” capability
that will enable bringing products to market quickly; and that the ATSG have in the
past been supportive of this concept.

The “generic” capability is much more than a “technical requirement” and requires

_ Significant change elsewhere within the business for example, the account managers

may need to have a different approach to clients and there may bea need for re

training in the new way of working,

It was noted that PONTIS have recommended that with respect toa banking

product, the clients should not be shown the details of the technology supporting the

offer.

The ATSG agreed that:

further work should be done to the requirement specification with input from
appropriate people as a business priority

© there is a need for a plan to manage the implications of. moving toa “generic”
product offering

FAD codes

Pathway have treated this as a fixed unique outlet identifier, however the FAD code
can change as a result of conversions or organisational change,

Pathway have hard coded the FAD codes into the system and changes will
necessitate a site visit by Pathway. A solution has been proposed through joint
working between Pathway and POCL, however this is not scaleable and will result
in costs of £5-7m if POCL goes through an organisational change. ‘(these costs are
indicative and are yet to be negotiated with Pathway).

Action It was agreed that:

© the possibility of using Data Management and assigning movable codes to FAD
codes, so that changes in office category can be implemented through the
changes in the new codes would be investigated:

© the extent to which FAD codes are embedded in other systems must be
investigated

© new systems must not have embedded codes

© the operational disruption resulting from changes to FAD codes must be
considered,

Astions

D Smith

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TSG Progress Report 23 November 1998

Actions
Ttem8 EMU

81 Peter Dent gave an update on the work done so far on EMU, potential dates for’
implementation and resulting timescales impact for POCL.

8.2 It was noted that dates used for planning purposes by POCL must be common across *
the Group.

83 Time estimates show that there will be approximately 36 months between the UK.
joining the EMU and the end of the conversion from sterling to EMU, which gives
POCL 30 months to prepare. However there is a possibility that POCL must be
ready to accept Euro from the date that is introduced whether the UK is in or not.

Possible dates:

84 On the assumption that there is an election in Nov 2001- April 2002, with a
referendum before that, the UK would be joining the EMU in the 3" quarter of 2002
with the Euro currency being introduced in February 2004.

8.5 Peter is working with clients to understand whether they have any dual currency
requirements, at this stage the dual currency requirements seem to be minimal.
There is a possibility that our agents have dual currency requirements, or that dual
currency is necessary for the HR systems.
It was agreed that Peter Dent should investigate whether and when we need to be

Action able to pay employees in Euros, P Dent
8.6 The service offering under the following scenarios needs to be decided:
- (a) if UK is out, (b) if UK is in but the Euro has not been introduced yet, (c) if the

UK is in and the Euro is introduced.

87 POCL is leading on EMU in the Group and Peter has sent an outline plan to the
TSSG.
“8.8 It was noted that one way of resourcing the EMU technical project is to switch the
staff from the Year 2K team once that project in complete. -
8.9 An initial estimate for the EMU work business is £85m.

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(Harnessing Technology) PROGRAMME DEFINITION STATEMENT - (17 Nov 98)

Programme Definition Statement

Programme Name: Harnessing Technology :

Programme Director: Paul Rich
Programme Manager: Dave Smith

W/ a : Date 1998

Post Office Counters Ltd.

Issue: Draft A

.

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1.0

HARNESSING TECHNOLOGY PROGRAMME DEFINITION STYATEMENT
November 1998

Purpose of document

The Programme Definition Statement (PDS) is the agreed statement of
objectives and plans between the target business area (e.g. the areas that will
be impacted by the Programme), the Programme Director and the Counters
Executive Committee (CEC). The document forms the basis for funding the
programme and will be maintained through the life of the programme, as a
management document, to monitor, control and review the programme.

11

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0

Contents

Programme aims, objectives and measures

Key milestones, deliverables and programme plan
Inter-dependencies with other programmes/projects
Programme Risks

Programme Organisation & meeting structure

6.1 Programme organisation chart

6.2 Programme Board-‘members

6.3 Meeting structures

Key Roles and Accountabilities

Resource

Programme Benefits

Programme brief authorisation history

10.1 Document validity

10.2 Revision history

10.3 Approvals

Distribution

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2.0 Programme Goals, Objectives & Measures

Vision:

POCL’s Harnessing Technology Programme is aimed at automating the entire

operating process from the customer transaction to the client. It isan essential

component of the business 'strategy and impacts ona wide range of POCL’s
strategic goals:

¢ improving POCL’s competitive offering to clients

¢ improving service to customers

increasing sales

¢ improving financial control

e reducing the cost of operations

Automation provides a platform for the development of a new long term

vision for POCL. The detailed business objectives of the vision are still

emerging but it is likely that the automation platform will be required to

support:

¢ extensive use of smartcards for a range of transactions -

¢_ information and advice services through connection to government and
other agencies

« “simple on line banking services, including cash withdrawal and deposits’

¢ integration with a number of customer access channels

The objectives below are for the timescales starting from November 98.

18 MTHS SYRS 5-10 YRS

Successful completion of Completion of Horizon rollout —_Integration of new vision

Horizon live trial requirements

Successful drop of release 2+ Allsystems integration

Completion of ADS roll out New technology research

Year 2K compliance Systems ready for EMU

Set of security standards Integration of new vision Appropriate technology to

: requirements enable delivery of business
requirements

Infrastructure Appropriate technology to

enable delivery of business
requirements

New technology research

Objectives: Objectives: Objectives:

a) Toensure that the business © a) To deliver anend to end a) To ensure that the new vision
has a migration plan that automated system requirements are delivered
enables it to move from the. .__b) To ensure that the business by HT in the timescales
current state to the future systems are able to support required.
state whilst maintaining the introduction of the EMU

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business continuity in the UK and business EMU
b) Toensure that all systems are . requirements
Year 2K compliantand that —c) To ensure that the new vision

business continuity is requirements are delivered
maintained during the by HT in the timescales
millennium changeover required.

¢) To ensure that the Horizon
system is fully implemented
to the quality and timescales Measures:
expected. . © alloutlets automated

e all cash centres have ADS
© technology delivered to meet
Measures:
© 300 offices in live trial
© commencement of roll out
© business continuity over the

millennium

The above is still work in progress, and has not fully taken into account the
requirements of the other programmes that are not yet fully defined.

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Measures:

© technology delivered to meet
requirements specification

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3.0 Key milestones, deliverables and programme plan

November 1998

HIGH LEVEL PROGRAMME PLAN ]

BUNUN EES SURO ECE

----}----4--b4-4-}-------4h

The delivery of the harnessing technology programme as currently defined is
contingent upon the delivery of the Horizon programme which will give front
end automation. Failure to deliver front end automation by Horizon would
necessitate a contingency solution to be invoked and the programme plan as

it currently stands would be invalidated.

Project Name Project No Start Date Completion Ranking
Date.
Horizon roll out August 99 November 2000
operational TIP . October 99
delivered
Horizon Release 2+ April 2001
SAPADS completes roll November 2000
out
S3 in operation October 2001
All systems start multi April 2001 October 2001
lateral testing
All systems working October 2001
together for the first
time

Detailed programme milestones:

1. HORIZON

© systems testing MORI

eevee

Live trial

systems testing- MOR2
MOT & Release Authorisation
Release 2 into 1c offices
Release 2 into an extra 100 offices

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HARNESSING TECHNOLOGY PROGRAMME DEFINITION STYATEMENT :
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Horizon national roll-out
Release 1c
Release 2
NR2+ live
Release 3
Release 4

e ReleaseS
. First use of TMS to HAPS interface
. First use of HAPS to TMS Interface
. Last Hybrid Platform transfer to HAPS
. Last Client Cut-over to TMS
. SAPADS

¢ SAPADS Pilot: Hastings

* SAPADS Pilot: Dartford

¢ SAPADS installed in Hemel Hempstead.

¢ SAPADS roll out

e LFSlive
7. Ref Data tested and ready for use
8. Interim TIP live
9. Batch TIP 1 working with Horizon
10.On line TIP

© Build & test phase
11.MICA SAP Tl element switched on
12.Single client live
13.SAP HR Goes Live
14.Data Management pilot
15.RDL in operation to support all systems
16.multi lateral testing
17.All systems working together for the first time
18.E2E requirements specification work
19.BA CAPS
° CAPS35

CAPS 4.0

eoeeee

AIPON

20.EMU
¢ Systems impact analysis
¢ Requirements specification
¢ development work on systems
¢ Testing- 6 months

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4.0

November 1998

Inter-dependencies with other programmes/projects

4.1 Deliverables that are required by the programme from other

1. Sones.

=

programmes

Deliverable Date of delivery. Programme (Project if
known)

Automation platform Release 3 FLA Senso dovckomntaa= “I

requirements of Horizon _I October 2000 requoecmmaty~ J\ ame by AP:

Automation requirements I April 99 for requirements I FLA

of a different platform (not I October 99 for

Horizon) implementation

New vision requirements _I not known new vision programmes

4.2 Deliverables that have to be delivered by the programme to other

programmes

The programme will deliver the technical capability and technical
infrastructure to enable other business requirements to be met using this
technology. In the first instance the programme will meet the requirements

out of the FLA programme. :

Deliverable Date of delivery Programme (Project if
: known)

Front end automation . I November 2000 FLA

(Horizon)

End to end automation I October 2001 FLA

Automated distribution I October2000 Wholesale cash

system : :

Release 3 October 2000 FLA, Network Bank

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5.0. Programme Risks
HARNESSING TECHNOLOGY RISK PROFILE
SPECIFIC RISK IMPACT CONTROLS/ UKE IMPACT TOT I. OWNER I FURTHER ACTIONS
, MONITORING Ho. AL REQ’D
oD F
[ej
Inadequate human I¢ Further delay to Horizon Project planning to free I 4 3] 2 40 Service Management to
resources to deliver implementation up resources i beset up
Horizon © BAcontract risk Aligning business
¢ Financial pressures on priorities with Horizon
Pathway Project restructuring
¢ Political embarrassment
¢ Staff and agents cynicism
© Loss of bill payment
business
PFlarrangements I Significant delays to Contractual 4 3) 2 36 Commitment to
may not be viable current automation plan negotiations programme required by
¢ Increase in costs Government lobbying the Board by the
© Loss of credibility authorisation of release
¢__Loss of clients 2 date
Horizon © Loss of confidence and Contractual 5 3) 2 55 Notwithstanding the
programme not reputation negotiations outcome of contractual
implemented ¢ Major costs to POCL Deep Pink negotiations, further
: © Project benefits lost (contingency) work being done on
¢ Delayed automation Requirements Horizon solution and
° Loss of clients Specification work timescales
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6.0 Programme Organisation & meeting structure

6.1 Programme Board members

BOARD MEMBERSHIP:
Chair: Paul Rich
Programme Manager: Dave Smith
Finance Rep: * Roger Tabor
Communications to be agreed by Rob Durrant
IS/IT Rep: Wendy Powney & Dave
Miller
Commercial/CBC/Bus Strategy Rep: I Mike Hellier
Business Centres: Paul Harris
Regional Rep: Eric Logan
Programme Office Rep: Doug Warwick
Head Of Planning TMT Elena Marsh
6.2 Meeting structures
PROGRAMME: HARNESSING TECHNOLOGY
MEETINGS/ FORUMS TO BE BAU (FUNCTIONAL)
SUBSUMED/ DIRECTED BY THE MEETINGS/ FORUMS -
PROGRAMME~ POCL LED
.
e ATSG
e ISStrategy Development Team
e TIP Project board
e INTERNET PERFORMANCE REVIEW
¢ APG/OPG
¢ SAPCON (including Technical
SAP/HR)
GROUP LED MEETINGS/ FORUMS WHICH BAU (FUNCTIONAL)
NEED TO INFORM THE PROGRAMME MEETINGS/ FORUMS -
GROUP LED
¢ IT Joint steering group
¢ Technology Strategy Steering Group
¢ Counter Automation Steering Group
¢ Group SAP Steering group
CAN'T BE SUBSUMED WITHIN THE DON’T KNOW? (NEED TO
PROGRAMME (NEEDSSEPARATE BOARD) I EXAMINE TERMS OF
e HORIZON REFERENCE)
e YEAR 2000 :

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6.3 Programme Structure

Process Sponsors
MANAGEMENT PROCESS PROGRAMME, Prijedt Spnsas HARNESSING TECHNOLOGY PROGRAMME
Strategic Directors
Scopdlobjectives
Business Case
Automation Visiay
Key Process Owmers Project Controllas
Business Stakeholders Related project mmages

IProcess Maps I_ AUTOMATION
IBisiness Rides PROCESS GROUP
Besiness Rages 7

7.0 Key Roles and Accountabilities
Note:

The roles as described below are consistent with the CEC decision to make
programme managers accountable for the delivery of the programme. How
this will be implemented in detail is still the subject of debate.

*Programme Director:- © Owns the Programme: accountable for its success
. ¢ Senior role, CEC member

¢ Commission the Programme and sets direction

e Chairs the Programme Board

© Decision taker/maker

© Manage stakeholders

¢ Directs the Programme Manager

Programme Board:- © Approve project creation (feasibility)and ensure alignment of projects
within Programme

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HARNESSING TECHNOLOGY PROGRAMME DEFINITION STYATEMENT
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Set direction

Review Programme progress Vs. key milestones

Management issues and risk

Ensure delivery of Programme benefits

By giving functional views (representative empowered/ power of veto)
Determine extent of independent assurance of project/ programme
Determine project/ portfolio boards and ongoing management
arrangements

eecereecee

Programme Manager:- * Accountable to Programme Director for delivery of Programme
¢ Runs the Programme ona day-to-day basis

¢ Information, advice and assistance to Programme Director

¢ Creates the Programme Definition Statement and clearly defined work
plan.

Defines the key milestones and end game (stages, Projects, sequences,
investment)

Manages resource acquisition and allocation

Manage Project dependencies (Intra-programme)

Manage inter Programme dependencies

Flag major issues to CEC

Benefits realization

Periodic reporting to CEC

eeeeee

Transformation Management Team purpose:

The TMT is part of the automation directorate within Head Office and interacts and integrates with
the individual projects via a programme reporting structure that has at its head the Automation
Transformation Steering Group which is attended by all CEC directors.

The Transformation Management Team has overall responsibility for:
° assuring the benefits of the Automation Transformation Programme are delivered
.  _ implementing the business process strategy in respect of the core operating process
We do this by:
integrating project plans and deliverables to ensure they are complete and consistent.
aligning the programme with other business strategies and plans, including the service
development plan
° assuring that business process and technical integrity are maintained throughout the
migration from existing to future state
owning horizon requirements
managing the issues and risks of the overall automation programme
assuring the benefits of the automation programme are delivered
managing the overall automation business case
supporting account teams, clients and other internal customers in the identification of
automation opportunities
* designing and specifying the systems and operating process dimensions of reengineered
products and services
¢ documenting current and future states of the operating process
e designing and specifying process improvements in respect of the operating process

8.0 Resource

Detailed resource implications of all the projects are maintained on the
individual project profiles. 7
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9.0 Programme Benefits
The majority of the programme benefits are being delivered by the strategic
automation projects and are summarised in the overall business case that is

monitored by the programme office and will be presented to the HT Board at
appropriate intervals.

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HARNESSING TECHNOLOGY PROGRAMME DEFINITION STYATEMENT
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10.0. Programme Definition Statement history

10.1. Document validity

This document is only valid on the day it was issued.

10.2. Revision history

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[Date of this revision: :November 1998

[Date of next review/ revision:

Revision Version

This document has been distributed to

Summary of changes Changes.
date number marked
17/11/98 . _IDraftA Draft issue for comment.

10.3 Approvals
This document requires the following approvals.
Programme Signature [Date Programme Signature Date
Manager "_ [Director
Version 1
11.0 Distribution

Name. Title Date of Issue ___IVersion
Paul Rich Programme Director 17/11/98 [Draft A
[Dave Smith Programme Manager 17/11/98 [Draft A
[Dave Miller Programme Board 17/11/98 Draft A
Roger Tabor Programme Board 17/11/98 Draft A
IWendy Powney Programme Board 17/11/98 [Draft A
Paul Kelsall Programme Board 17/11/98 Draft A
Eric Logan Programme Board 17/11/98 Draft A.
Mike Hellier Programme Board 17/11/98 Draft A
Paul Harris Programme Board 17/11/98 Draft A
Doug Warwick Programme Board 17/11/98 Draft A.
Elena Marsh Programme Board 17/11/98 Draft A

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